Indian offshorers want to offshore outsource U.S. Government contracts & more American jobs

Infosys and Wipro Set Up Units to Bag Government IT Outsourcing Contracts

10/08/2009

Infosys Technology and Wipro Technologies, two of the most prominent Indian IT firms, are setting up centers to tap growing opportunities in the USD 100 billion government IT outsourcing market. Both the companies have not only started investing in marketing campaigns to attract more clients globally, but have also began recruiting consultants and experts from government companies for placing them in the markets of India, the US, the UK, Canada, and Australia.

The two companies will compete with other companies, including Tata Consultancy Services (TCS), International Business Machines (IBM), and EDB Business Partner. According to S Gopalakrishnan, CEO of Infosys, the firm plans to concentrate on this and convert it into a multi-billion opportunity in the next few years.

The move marks a massive shift in delivering services as the company has been focusing on the top export markets in the past. Wipro, which had signed a few contracts with government organizations in the past, is also planning to take various initiatives to gain more business from this segment globally. The company also plans to increase its foreign workforce from 20–25 percent to about 50 percent to cater to the demands of foreign governments to deliver the projects locally.

If there is ever a situation where we need a ban on offshore outsourcing of government contracts, this is it. This is U.S. taxpayer money going offshore, funding more labor arbitrage and displacing U.S. citizens for jobs.

Please note, U.S. corporations, especially IBM are doing the same damn thing, getting U.S. taxpayer money and offshore outsourcing the government contract along with the jobs.

More from the India Times (note the U.S. media black out on the offshore outsourcing of American jobs):

A focused solution practice will involve hiring consultants from government organisations , putting together a large team of domain experts in the markets of India, US, UK, Canada and Australia, and develop a new revenue opportunity at par with other established verticals such as retail, telecom and banking and financial services industry. “We have taken a decision to start government practice in India and other markets of the UK, Australia, Canada and the US,” said S Gopalakrishnan, chief executive of Infosys Technologies.

So, get that, these outsourcers are going to get government insiders in order to offshore outsource taxpayer funded jobs and government contracts.

At my company, they physically sit in India, connect into the corporate system in San Diego through the internet using, the Virtual Private Network (VPN), use our computers and network to do software QA. Meanwhile, the company lays off American employees.

Once they collect their pay, they pay Indian taxes, purchase Indian goods. The IRS gets nothing. US merchants who sell goods and service gets nothing (uh... because they are physically in India!)

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